“In addition, we are excited about our new NXT* facility in Europe,
which doubles our capacity in our fastest growing product line and
enables state-of-the-art manufacturing capabilities on two continents.
This will allow us to strengthen our leadership position in automotive
tire applications and enable additional new product offerings.”

Mr. Boss concluded, “As we look out into 2018, we expect strong demand,
solid and improving industry fundamentals, pricing tailwinds, and more
material EBITDA contribution from the capital investments we have made
in our specialty product portfolio over the last several years. Further,
we have implemented broad based price increases across the entire
product portfolio, which are expected to benefit fiscal year 2018
results. This, along with our recently announced $15 million
restructuring initiative, should continue to drive considerable margin
expansion.”

______________________________

1 Defined as total principal value of debt less cash and
cash equivalents divided by Segment EBITDA.

First Quarter 2018 Results

Net Sales. Net sales for the three months ended March 31, 2018
were $657 million, an increase of 21% compared with $544 million in the
prior year. The increase was driven by volume gains across all of
Momentive’s segments, which reflected the benefits of our strategic
growth investments and increased demand in automotive, agriculture,
personal care and industrial end markets, as well as pricing initiatives
announced in the fourth quarter of 2017.

Net Income (Loss). Net income for the three months ended March
31, 2018 was $20 million compared with a net loss of $30 million in the
prior year period.

Segment EBITDA. Segment EBITDA for the three months ended March
31, 2018 was $94 million, an increase of 36% compared with $69 million
in the prior year period. The increase in Segment EBITDA was driven by
operating leverage and the same factors that impacted revenue growth in
the quarter, and partially offset by approximately $10 million of
weather-related disruptions in January. Momentive expects about $5
million of the impact to reverse in the second half of 2018.

Segment Results

The following tables reflect net sales and Segment EBITDA by reportable
segment for the first quarter ended March 31, 2018 and 2017. See
“Non-U.S. GAAP Measures” and Schedule 4 to this release for further
information regarding Segment EBITDA and for a reconciliation of net
(loss) income to Segment EBITDA.

Net Sales (1):

(in millions)

Three Months Ended March 31,

2018

2017

Performance Additives

$

248

$

220

Formulated and Basic Silicones

357

275

Quartz Technologies

52

49

Total

$

657

$

544

(1)

Intersegment sales are not significant and, as such, are eliminated
within the selling segment.

Segment EBITDA:

(in millions)

Three Months Ended March 31,

2018

2017

Performance Additives

$

54

$

47

Formulated and Basic Silicones

41

24

Quartz Technologies

9

7

Corporate

(10

)

(9

)

Total

$

94

$

69

Global Restructuring Program and Siloxane Production Transformation

In March 2018, the Company announced a restructuring initiative totaling
$15 million in estimated annual run rate cost reductions with
approximately $8 million to be realized in 2018. The most recent
initiative targets primarily selling, general, and administrative cost
reductions. The Company expects net costs to achieve savings of
approximately $10 million. Momentive previously completed global
restructuring programs and siloxane production transformation of its
Leverkusen, Germany, facility that generated approximately $45 million
in annual savings.

Liquidity and Balance Sheet

At March 31, 2018, Momentive had net debt, which is total debt less cash
and cash equivalents, of approximately $1.1 billion. In addition, at
March 31, 2018, Momentive had $417 million in liquidity, including $173
million of unrestricted cash and cash equivalents, and $244 million of
availability under its senior secured asset-based revolving loan (“ABL”)
facility (undrawn, with $56 million letters of credit outstanding).
During the first quarter of 2018, Momentive extended the Company’s ABL
Facility to March 2023 subject to the terms outlined in the Amendment
Agreement and increased the commitments under the ABL Facility by $30
million for a total of $300 million. Momentive expects to have adequate
liquidity to fund its operations for the foreseeable future from cash on
its balance sheet, cash flows provided by operating activities and
amounts available for borrowings under the ABL Facility.

Earnings Call

Momentive will host a teleconference to discuss first quarter 2018
results on Tuesday, May 8, 2018, at 10 a.m. Eastern Time. Interested
parties are asked to dial-in approximately 10 minutes before the call
begins at the following numbers:

Live Internet access to the call and presentation materials will be
available through the Investor Relations section of the Company’s
website: www.momentive.com.
A replay of the call will be available for three weeks beginning at 2
p.m. Eastern Time on May 8, 2018. The playback can be accessed by
dialing (855) 859-2056 (U.S.) and +1 (404) 537-3406 (International). The
passcode is 8598993. A replay also will be available through the
Investor Relations section of the Company’s website.

Non-U.S. GAAP Measures

Segment EBITDA is defined as EBITDA (earnings before interest, income
taxes, depreciation and amortization) adjusted for certain non-cash and
certain other income and expenses. Segment EBITDA is an important
measure used by the Company's senior management and board of directors
to evaluate operating results and allocate capital resources among
segments. Segment EBITDA should not be considered a substitute for net
(loss) income or other results reported in accordance with accounting
principles generally accepted in the United States (“GAAP”). Segment
EBITDA may not be comparable to similarly titled measures reported by
other companies. See Schedule 4 to this release for a reconciliation of
net income (loss) to Segment EBITDA.

Adjusted EBITDA is defined as EBITDA adjusted for certain non-cash and
certain non-recurring items and other adjustments calculated on a
pro-forma basis, including the expected future cost savings from
business optimization or other programs and the expected future impact
of acquisitions, in each case as determined under the governing debt
instrument. The Company believes that including the supplemental
adjustments that are made to calculate Adjusted EBITDA provides
additional information to investors about the Company’s ability to
comply with its financial covenants and to obtain additional debt in the
future. Adjusted EBITDA is not a defined term under GAAP. Adjusted
EBITDA is not a measure of financial condition, liquidity or
profitability, and should not be considered as an alternative to net
(loss) income determined in accordance with GAAP or operating cash flows
determined in accordance with GAAP. Additionally, Adjusted EBITDA is not
intended to be a measure of free cash flow for management's
discretionary use, as it does not take into account certain items such
as interest and principal payments on the Company’s indebtedness,
depreciation and amortization expense (because the Company uses capital
assets, depreciation and amortization expense is a necessary element of
the Company’s costs and ability to generate revenue), working capital
needs, tax payments (because the payment of taxes is part of the
Company’s operations, it is a necessary element of the Company’s costs
and ability to operate), non-recurring expenses and capital
expenditures. Fixed Charges under the indentures should not be
considered as an alternative to interest expense. See Schedule 5 to this
release for a reconciliation of net (loss) income to Adjusted EBITDA and
the calculation of the Adjusted EBITDA to Fixed Charges ratio.

Forward-Looking and Cautionary Statements

Certain statements in this press release are forward-looking statements
within the meaning of and made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including statements
related to our transformation and restructuring activities, growth and
productivity initiatives, anticipated cost savings, growth, and market
recovery, the impact of work stoppage and other incidents on our
operations and competitiveness. In addition, our management may from
time to time make oral forward-looking statements. All statements, other
than statements of historical facts, are forward-looking statements.
Forward-looking statements may be identified by the words “believe,”
“expect,” “anticipate,” “project,” “plan,” “estimate,” “may,” “will,”
“could,” “should,” “seek” or “intend” and similar expressions.
Forward-looking statements reflect our current expectations and
assumptions regarding our business, the economy and other future events
and conditions and are based on currently available financial, economic
and competitive data and our current business plans. Actual results
could vary materially depending on risks and uncertainties that may
affect our operations, markets, services, prices and other factors as
discussed in the Risk Factors section of our most recent Annual Report
on Form 10-K and our other filings with the Securities and Exchange
Commission (the “SEC”). While we believe our assumptions are reasonable,
we caution you against relying on any forward-looking statements as it
is very difficult to predict the impact of known factors, and it is
impossible for us to anticipate all factors that could affect our actual
results. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are
not limited to: a weakening of global economic and financial conditions,
interruptions in the supply of or increased cost of raw materials, the
impact of work stoppage and other incidents on our operations, changes
in governmental regulations or interpretations thereof and related
compliance and litigation costs, adverse rulings in litigation,
difficulties with the realization of our cost savings in connection with
transformation and strategic initiatives, including transactions with
our affiliate, Hexion Inc., pricing actions by our competitors that
could affect our operating margins, the impact of our growth and
productivity investments, our ability to realize the benefits there
from, and the timing thereof, our ability to obtain additional
financing, and the other factors listed in the Risk Factors section of
our SEC filings. All forward-looking statements are expressly qualified
in their entirety by this cautionary notice. The forward-looking
statements made by us speak only as of the date on which they are made.
Factors or events that could cause our actual results to differ may
emerge from time to time. We undertake no obligation to publicly update
or revise any forward-looking statement as a result of new information,
future events or otherwise, except as otherwise required by law.

About Momentive

Momentive is a global leader in silicones and advanced materials, with a
75 plus year heritage of being first to market with performance
applications that support and improve everyday life. Momentive delivers
science-based solutions for major industries, by linking its custom
technology platforms to allow the creation of unique solutions for
customers. Additional information is available at www.momentive.com.

Represents estimated cost savings, on a pro forma basis, from
initiatives implemented or being implemented by management.

(e)

Non-cash charges primarily include the effects of foreign exchange
gains and losses and impacts of asset impairments and disposals, and
stock-based compensation expense.

(f)

Effective Quarter ended September 30, 2017, Nantong, China
subsidiary is no longer designated as Unrestricted Subsidiary under
the ABL Facility and the indentures that govern our notes, resulting
in an increase of $7 million in adjusted EBITDA.

MPM’s ability to incur additional indebtedness, among other actions,
is restricted under the indentures governing our notes, unless MPM
has an Adjusted EBITDA to Fixed Charges ratio of at least 2.0 to
1.0. As of March 31, 2018, we were able to satisfy this test and
incur additional indebtedness under these indentures.

(i)

Represents Pro forma Fixed Charge Coverage Ratio (the “FCCR”) as
defined in the credit agreement for the ABL Facility. If the
availability under the ABL Facility is less than the greater of (a)
12.5% of the lesser of the borrowing base and the total ABL Facility
commitments at such time and, (b) $27 million, then the FCCR must be
greater than 1.0 to 1.0.